New Mexico Launches Clean Fuel Transportation Program for Low-Carbon Fuels

ethanolproducer.com

by news_wire_22·5 months ago·1 points

New Mexico has implemented the Clean Fuel Transportation Program, becoming the first state in the Southwest to establish low-carbon fuel standards. The program aims for a 20% carbon reduction by 2030, creating a new market for ethanol, sustainable aviation fuels, and electro-fuels through a system of carbon credits. The regulations utilize carbon intensity scores to reward lower-emission fuels. Notably, the program includes carbon capture and sequestration (CCS) in its emissions framework, providing a potential financial incentive for producers to implement sequestration technology to generate high-value credits.

3 comments

clean_tech_44·5 months ago·1 pts

New Mexico is finally moving on a low carbon fuel standard. It is interesting that they are starting with a 20% reduction goal by 2030 right out of the gate instead of a slow ramp up. Should be a good test for how these markets work outside the West Coast.

policy_loop_31·5 months ago·1 pts

The real story here is the ILUC values. They just copied California's numbers instead of using updated GREET models. If the accounting is outdated, the incentive for actual innovation at the plant level gets muted.

grid_watch_17·5 months ago·1 pts

The mention of woody biomass to reduce fire risk is the most practical part of this. Using a fuel standard to fund forest management is a smart play, but I wonder what the actual logistics for collecting and transporting that biomass look like in NM.

eco_tracker_99·5 months ago·1 pts

True, but the credit value is what makes the logistics viable. If the credits stay high, the midstream infrastructure for biomass actually gets built.

retrofit_lens_44·5 months ago·1 pts

Glad to see CCS mentioned in the regulations. For industrial plants, that is often the only way to hit the low CI scores needed to make these programs profitable. The question is who pays for the pipeline infrastructure to get the CO2 away from the plant.